With solar cost dropping, the benefits of switching to clean energy have never been better. Homeowners that switch to solar typically recoup the initial investment in less than 8 years through energy savings.
Using an online solar quote marketplace, homeowners in Los Angeles can expect to save over 12,000 with a 5 kW system after federal incentives and discounts. Taking into account a typical rate of inflation, these savings could rise to over $81,000.
With solar panels and battery storage, LA residents can take control of their electricity bills and reduce energy costs.1
In fact, solar homeowners can make money through Net Metering when they generate excess energy that the utility company must purchase back. These proceeds can help offset the initial investment and shorten the payback period.
Local tax incentives and utility prices can also drive down the cost of going solar in Los Angeles. But the biggest factor that affects the price is the system size. Online solar quote marketplaces typically give you a median cost per watt of installation, but the actual cost will vary by your system’s specifications.
The good news is that the cost of solar has decreased significantly over the years. And with the SGIP program and a variety of other state and federal rebates, it’s now easier than ever to get started. And don’t forget that a home solar power system increases the value of your property.
Homeowners can recoup the cost of their solar system within 7-8 years through savings on their utility bills.
High electricity rates and state and local incentives make California one of the best places to go solar. In addition, the federal solar tax credit significantly reduces the upfront cost.
Many LA residents can save up to $100,000 on their energy bills over the 25-year warranty period of their panels. Additionally, many homeowners choose to add a backup battery to their system, which can help them avoid outages during extreme weather.
A Los Angeles residential solar system is a smart investment for any homeowner in Los Angeles. Not only does it increase the value of your property, but it also helps prevent climate change and cuts your reliance on fossil fuels. Plus, it will produce clean energy that’s free of harmful emissions.
Many state, local and utility-sponsored solar incentives can help make solar panels more affordable. Some may include rebates and tax credits.
For instance, homeowners who purchase a solar energy system qualify for the federal 30% investment tax credit (ITC), which they can apply against their tax liability. However, this credit will decrease to 22% in 2022, and it will expire at the end of 2024 unless Congress extends it again.
California also offers a property tax exemption for residential home solar systems. Additionally, solar customers may benefit from utility net metering, which allows you to send extra power back to the grid in exchange for energy bill credits. Currently, Los Angeles Department of Water and Power (LADWP) electric customers can only sign up for NEM 2.0, but new LADWP customers will be able to take advantage of the NEM 3.0 policy starting in 2020.
In addition, the CSI-Thermal Low-Income program provides higher incentives for solar hot water systems. This incentive is available to qualified residents in PG&E, SCE, SoCalGas, and SDG&E service territories.
Homeowners in Los Angeles can reap huge savings on their electricity costs when they install a solar energy system. They can also add value to their homes and help the environment at the same time. The installation process can be simple if you work with the right team.
Depending on your property, you may be able to take advantage of local and state incentives to make going solar even more affordable. These can include tax credits, rebates, and other incentives.
In addition to federal solar tax credits, the city offers a variety of other incentives for homeowners and renters alike. For example, LADWP’s Shared Solar Program allows homeowners and tenants to buy power from dedicated solar installations in other parts of the city. Participants get a special rate for 50 or 100 kWh a month that remains steady, so they can expect to save as their utility rates rise. In addition, LADWP has launched a new online solar permitting system with instant applications that should speed up the process.